Dive Brief:
- WalmartLabs, the R&D unit of retailer Walmart, announced it has bought loyalty startup PunchTab in order to improve the Sam’s Club customer experience.
- PunchTab connects data about in-store activity to customer loyalty and engagement programs and communicates with customers via e-mail, web, and mobile channels.
- Silicon Valley-based WalmartLabs has made 15 tech acquisitions since forming four years ago, seeking to improve site search, data analytics, ad technology, and other areas.
Dive Insight:
Founder Ranjith Kumaran started PunchTab four years ago to help companies operate loyalty programs, but has since helped retailers such as The Yankee Candle Company link loyalty programs to shopper data in brick-and-mortar stores.
Using PunchTab, companies can create a customer loyalty or engagement program, then collect real-time data based on purchases in-store. Communicating with customers on multiple channels, PunchTab will initially focus on improving and tracking Sam’s Club offers before moving on to the flagship chain’s efforts. PunchTab staffers including co-founder Mehdi Ait Oufkir will go to WalmartLabs as part of the acquisition.
Equipped with additional data about its customers, Walmart will use the data to better personalize offers in Sam’s Club stores, and could help drive sales for particular brands and promotions.